World Bank announces up to $12bn in immediate funds to help fight coronavirus
The World Bank is to release up to $12bn (£9.3bn) immediately to fight the global spread of coronavirus.
The funding emerged on the same day the Federal Banking Reserve cut interest rates to protect the US economy from the economic consequences of the outbreak.
Traditionally, the role of the World Bank is to lend money for long term development with emergency loans provided by the International Monetary Fund (IMF).
The lender said up to $6bn in funds would be made available from its private finance arm, the International Finance Corporation.
Meanwhile $2.7bn would come from the International Bank for Reconstruction and Development for middle-income countries, and $1.3bn from the International Development Association for poorer nations.
The funds will be targeted at improving local health infrastructure and aid to stage public interventions if
required. World Bank president David Malpass said the lender wished to avoid any measures that could impact on trade.
Spring meetings for the World Bank and the International Monetary Fund will be held virtually.
Malpass added there were still “many unknowns”, and “much more” aid might be required.
At the same time, he said global and regional cooperation was key to tackling the virus and saving lives.
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The world economy has been seen several hits from the effect of the virus.
Last week, stock markets fell significantly. Today US indices at first jumped in reaction to the Fed move but quickly fell into the red.
The S&P 500 closed 2.81 per cent lower while the Dow Jones ended 2.94 per cent down. European stocks trimmed earlier gains but finished higher, and the FTSE closed 0.95 per cent up.
Oil prices also fell due to fears around the demand for oil if the world economy slows.
Individual industries including automotive and airlines have both faced disruption. This is due to difficulties in the car part supply chain and cancelled flights respectively.
The virus originated in China and has since spread to countries across Asia, Europe, the Americas and Africa. To date, 51 cases have been confirmed in the UK.